Sunstone Hotel Investors Inc 2024年度报告

2024 Annual Report SUNSTONE HOTEL INVESTORS, INC.2024 ANNUAL REPORT Property Locations and Room Counts California Louisiana Four Seasons Resort NapaValley, 85Hilton San Diego Bayfront, 1,190Hyatt Regency San Francisco, 821Marriott Long Beach Downtown, 376Montage Healdsburg, 130 Hilton New Orleans St. Charles, 252JW Marriott New Orleans, 501 FloridaAndaz Miami Beach, 287 Oceans Edge Resort & Marina, Key West, 175Renaissance Orlando at SeaWorld®, 781 OregonThe Bidwell Marriott Portland, 258 MassachusettsMarriott Boston Long Wharf, 415 HawaiiWailea Beach Resort, Maui, 545 Washington DCThe Westin Washington, DC Downtown, 807 TexasHyatt Regency SanAntonio Riverwalk, 630 TO THE STOCKHOLDERS OFSUNSTONE HOTEL INVESTORS, INC.: 2024 marked a year of significant progress at Sunstonewith execution on all aspects of our strategy. Whilelodgingindustryoperatingfundamentalsunderperformed expectations in 2024, we took stepsduring the year to provide the Company with afoundation for sustained growth in earnings and netasset value (“NAV”) per share. Here is a review of ourstrategy, 2024 highlights, and outlook. believe our disciplined approach and track record ofportfolio investment have delivered significant value toour owners. Return of Capital In addition to capital recycling and investing in ourportfolio, returning capital to our stockholders is thethird lever we utilize to deliver superior stockholderreturns. We look to maximize our annual dividend bydistributing 100% of our taxable income. In additionto cash dividends, we will also return capital throughopportunisticshare repurchases,when we canrepurchase at a meaningful discount to our net assetvalue. Our Strategy Ourstrategy is to produce superior relative andabsolute stockholder returns by actively recyclingcapital, thoughtfully investing in our portfolio, andreturning capital to stockholders. While it is simple andfocused, we believe that a well-executed combinationofhotel and resort acquisition, investment, assetmanagement,anddispositioncangeneraterisk-adjusted returns well in excess of our cost ofcapital and deliver superior returns. Additionally,we employ an appropriately leveredbalance sheet, which allows us to deploy capital duringall phases of the operating cycle. We expect to continueutilizingour investment capacity and moderatelyincreasing our leverage early in the operating cycle,particularlyas we become more acquisitive.Weanticipate that our leverage levels will decline later inthe operating cycle as earnings grow and we build morefinancial capacity. Capital Recycling Hotel and resort ownership is a cyclical and capital-intensive business. We believe that the lifecycle of ourinvestmentsmust adhere to a time horizon thatmaximizes our return potential. Once we have executedour investment plan for each asset and maximized thereturn on our invested capital, we will harvest thatvalue and recycle those proceeds into new growthopportunities. Lastly, we believe in and actively employ stockholder-friendly corporate governance, open communication,robuststakeholder disclosure,and compensationpractices that best align with stockholder interests. Weknow that stockholders not only own the Company butalso have the final determination of the Company’sfuture.As part of our corporate governanceframework, we elect all directors annually, allow bylawsto be amended by stockholders, restrict the Board’sability to classify directors, allow proxy access, link amajority of our compensation to absolute and relativestockholder returns, employ a compensation clawback Portfolio Investment We deploy capital into our portfolio where we believewe can create value and generate returns for ourinvestors. We focus on each asset to determine theappropriate time and amount to invest and when toharvest gains. While this is easier said than done, we caprate on 2024 earnings.In addition to thecompelling initial yield, we have identified severalvalue-enhancing opportunities we will capitalize on inthe near term. The hotel has an ideal location, situatedbetween two of the state’s biggest leisure demanddrivers, the Riverwalk and the Alamo, and is withinwalking distance of the convention center. This year,we are updating the meeting space to better align itwiththe quality level of the already renovatedguestrooms. Additionally, leading up to the opening ofthenew$500 million Alamo Visitor Center andMuseum in 2027, we will enhance the ground floorretail spaces as we expect this area will be a primaryaccess point to the new Alamo grounds and providesthe opportunity to drive additional lease revenue. Wearevery pleased with this investment and seeconsiderable potential to grow group and transientbusiness. policy, and require executives and directors to hold ameaningful ownership interest in the Company. 2024 Highlights While lodging industry demand trends were not asrobust as expected in 2024, the combination of ourpremier portfolio and the execution of our strategyduring the